REALTOR® Magazine-Daily News-Congress Calls for Foreclosure Program Revamp

REALTOR® Magazine-Daily News-Congress Calls for Foreclosure Program Revamp "Congress Calls for Foreclosure Program Revamp
The government should retool its foreclosure-prevention program because so far it hasn’t worked, a report released Tuesday by the Congressional Oversight Panel declares.

The program 'will never have the reach necessary to put an appreciable dent into the foreclosure crisis,' the report says.

The report calls for the Treasury Department to set objectives and hold banks that administer mortgages accountable for failing to complete loan modifications properly. It also recommends allowing borrowers to apply for loan modifications online and calls for a system to monitor cases and intervene when borrowers fall behind on their payments on modified mortgages."

REALTOR® Magazine-Daily News-U.S. Orders End to Dual-Track Process

REALTOR® Magazine-Daily News-U.S. Orders End to Dual-Track Process: "U.S. Orders End to Dual-Track Process
Acting Comptroller of the Currency John Walsh last week told banks to stop foreclosure proceedings if the borrower is starting or in the midst of a loan-modification program.

This dual-track system has hastened foreclosure for many borrowers who were caught between instructions to pay lower payments during a loan-modification trial period and punishing fines for failure to pay the full amount if the loan mod failed.

One regulator disagreed with the change, saying that lenders needed to be able to press forward with foreclosures, especially when borrowers clearly weren’t going to meet loan-modification standards"

RPC - Frequently asked questions

RPC - Frequently asked questions: "Manufacturer of finely crafted tiny houses and park model RVs

How much do they cost
Depends on size, features and complexity of the design.
The least expensive is a bare bones 12x16+4' porch Camp Cabin model for $15,000. This is a complete turn key cabin and is very basic- just right for a rental."

Plans | Little House on the Trailer

Plans | Little House on the Trailer: "120 square foot, 8′ x 15′ simple structure, designed for a tiny house, studio, home office or shed. Everything you need including a cut list, a shopping list that you can take to your local Home Depot and Lowes. Build the basic shell for as little as $1295 plus your labor.

Typically plans of this quality and detail sell for $100 but to make them more accessible to more buyers we’re keeping our house plan price to $27. Here is what the plans include:"

REALTOR® Magazine-Daily News-Buyers Show Growing Interest in Tiny Houses

Magazine-Daily News-Buyers Show Growing Interest in Tiny Houses: "Buyers Show Growing Interest in Tiny Houses
The tightly built, tiny home is one small segment — no pun intended — of real estate sales that is doing relatively well."

Prices fell during the third quarter and may continue down. - Nov. 30, 2010

Prices fell during the third quarter and may continue down. - Nov. 30, 2010: "U.S. home prices fell 2% in the third quarter after having gained steadily since early 2009.

The S&P Case-Shiller Home Price Index has recorded gains in four of the previous five quarters, including a 4.7% jump between April and June 2010. That leaves national home prices down 1.5% year over year and off 2% compared to the second quarter, according to the Index, which was released Tuesday."

States, mortgage lenders in talks over fund for borrowers in foreclosure mess

States, mortgage lenders in talks over fund for borrowers in foreclosure mess: "State attorneys general and the country's biggest lenders are negotiating to create a nationwide fund to compensate borrowers who can prove they lost their home in an improper foreclosure, state and industry officials said."

Unemployed? Get a federal loan to pay your mortgage - Oct. 5, 2010

Unemployed? Get a federal loan to pay your mortgage - Oct. 5, 2010: "You can soon apply for a no-interest government loan for up to $50,000 to pay your mortgage and cover your arrears. The loan, which can offer assistance for up to two years, will be forgiven if the homeowner stays in the house for five years."

Obama vetoes foreclosure bill as anger grows

Obama vetoes foreclosure bill as anger grows: "President Obama stepped into a growing political furor over the nation's troubled foreclosure system Thursday by vetoing a little-known bill that critics say would have made it easier to evict homeowners who missed their payments."

First Priority Financial - Content Pages - California Home Loans - California FHA 203k Refinance

First Priority Financial - Content Pages - California Home Loans - California FHA 203k Refinance: "California FHA 203k Refinance loans is by far the most incredible program out there. FHA will allow you to refinance your California Home and make improvements all in one loan. The value of your home will be based on the 'As completed' value - meaning once the work is done your house will be worth more and with this knowledge FHA allows you to borrow against that would be value.

Take a look at some of the items you can do to improve your home:

Roofs, gutters and downspouts
HVAC systems (heating, venting and air conditioning)
Plumbing and electrical
Minor kitchen and bath remodels
Flooring: carpet, tile, wood, etc.
Interior and exterior painting
New windows and doors
Weather stripping & insulation
Improvements for persons with disabilities
Energy efficient improvements
Stabilizing or removing lead-based paint
Decks, patios, porches
Basement completion and waterproofing
Septic or well systems
Purchase of new kitchen appliances or washer / dryer
Installing Solar Panels!!!!!
Check out this video on how to use the California Renovation Loan to your advantage."

Rates Drop to New Lows

Magazine-Daily News-Mortgage Rates Drop to New Lows: "Mortgage Rates Drop to New Lows
Fixed mortgage rates have maintained recent lows or set new ones for more than two months now, sinking to 4.42 percent on 30-year loans for the week ended Aug. 19. The rate is down from 4.44 percent last week and is the lowest ever recorded since Freddie Mac launched its survey almost 40 years ago.

The fixed 15-year average also hit a new low, at 3.9 percent; while five- and one-year adjustable-rate mortgages remained flat at 3.56 percent and 3.53 percent, respectively.

Source: The Wall Street Journal, Amy Hoak (08/20/10)"

Multifamily Property Market Is on the Mend

"Multifamily Property Market Is on the Mend
Sales of multifamily housing is picking up nationwide, commercial practitioners say.

Buyers believe the sector is a sound bet because current prices are below construction costs in many cases and rental business is improving. Plus, there has been little additional development in the past couple of years and some industry analysts believe that shortly there will be a shortage in some markets."

Mortgage cramdowns: Debate might give new life to mortgage cramdown legislation - latimes.com

Mortgage cramdowns: Debate might give new life to mortgage cramdown legislation - latimes.com: "Debate might give new life to mortgage cramdown legislation"

Foreclosure Activity Increases 4 Percent in August

Foreclosure Activity Increases 4 Percent in August: "Foreclosure Activity Increases 4 Percent in August"

HUD

HUD: "Types of Listings; HUD markets properties in three categories: Insured (IN), Insured with Escrow (IE) and Uninsured (UI). Each property type offers different opportunities to the savvy buyer:"

Foreclosures Rise; Bank Repos at New High - TheStreet

Foreclosures Rise; Bank Repos at New High - TheStreet: "Foreclosures rose at an elevated rate for the second month in a row, according to RealtyTrac, with one in every 381 U.S. homes receiving a foreclosure filing."

REOMAC - About

REOMAC - About: "About REOMAC

REOMAC, founded in 1985 in California, began as a forum for lenders with REO assets to share best practices with their peers. As time went on and the association grew, it became important to include related industry professionals and expand our membership categories. Today, REOMAC is the premier non-profit trade association serving the mortgage default servicing industry nationwide. We are dedicated to providing our members with unparalleled educational and networking opportunities. We are also committed to delivering timely information that our members can put to practical use to mitigate losses on defaulted mortgage loans; provide ancillary services to lenders and servicers; or help manage, market, maintain, sell and ultimately dispose of non-performing real estate assets."

Bank REO Homes & Properties for Sale

Bank REO Homes & Properties for Sale: "California has the highest inventory of reo properties in the entire country. The staggering number of California reo homes and properties offered for sale at banks and lenders are primarily due to the extraordinary loss of home equity due to property price falls and job losses resulting from the financial crisis. Since California is the most populous state in US with about 40 million people and most developed, it has suffered the most due to the real estate bubble burst during the past two years. Home owners and investors in california real estate of all types: commercial, residential, apartments, multi-family have suffered equity loss due to the declining home prices. So the number of California REO homes is at historical highs.

REO Homes in California CA"

2010 Tax Credit for New Home / First-Time Buyer

2010 Tax Credit for New Home / First-Time Buyer: "Reservation Requests: We will accept reservation requests for the New Home Credit by fax only beginning May 1, 2010. If you are applying for the First-Time Buyer Credit, you will not be able to request a reservation before escrow closes. Reservation requests received before May 1, 2010, or after escrow closes will be denied.

If a buyer wishes to request a reservation, before the close of escrow:
The seller must complete Parts I, II, & III of Form 3549-RR, Reservation Request for New Home Credit.
The buyer completes Parts IV & V.
Fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB at 916.855.5577. If escrow has opened, it is best for the escrow person, on behalf of the buyer and seller, to fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB and provide a copy to the buyer. If escrow has not opened, the buyer may fax it to FTB. (The buyer retains ultimate responsibility to ensure the completed reservation request and the required pages of the purchase agreement are submitted timely to the FTB.)
Do not fax the entire purchase agreement. Only fax the pages which show:
Property address
Buyer's name
Seller's name
Purchase price
Deposit amount
Buyer's signature
Seller's signature"

2010 Tax Credit for New Home / First-Time Buyer

2010 Tax Credit for New Home / First-Time Buyer: "How to apply
Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. Applications received before May 1, 2010, or before escrow closes will be denied. We are currently only accepting applications for the New Home Credit. Any applications received after August 15, 2010 for the First-Time Buyer Credit will be denied. (Updated 08/19/10)

Within two weeks (14 calendar days) after the close of escrow:
The seller must complete Parts II, III, and also Part IV (if the home has never been occupied) of Form 3549-A, Application for New Home / First-Time Buyer Credit, and provide a copy to the buyer or escrow person.
The buyer will complete Parts I, V & VI of Form 3549-A.
Fax the completed Form 3549-A and the final settlement statement (generally the buyer's HUD-1 statement) to FTB at 916.855.5577. It is best that the escrow company, on behalf of the buyer, fax the completed application and settlement statement to FTB and provide a copy to the buyer. (The buyer retains ultimate responsibility to ensure the completed application and settlement statement are submitted timely to the FTB.)"

2010 Tax Credit for New Home / First-Time Buyer

2010 Tax Credit for New Home / First-Time Buyer: "Important Update (08/16/10): FTB only accepting New Home Credit Applications.
FTB has stopped accepting First-Time Buyer applications as of midnight Sunday, August 15, 2010. We have received more than enough to fully allocation the $100 million. We needed to accept additional First-Time Buyer applications since we have received so many duplicate, revised, and late applications. However, we will only issue approved certificates of allocation until the $100 million is exhausted. All First-Time Buyer applications received after August 15, 2010 will be denied. We will continue to accept New Home reservation requests and applications until further notice. (Updated 08/19/10)"

Foreclosure Mills: Wall Street’s Latest Fraud Scheme � SpeakEasy

Foreclosure Mills: Wall Street’s Latest Fraud Scheme SpeakEasy: "Foreclosure Mills: Wall Street’s Latest Fraud Scheme
Financial giants have figured out yet another way to profit from fraud. After devastating communities across the country with shady subprime loans, the mortgage industry has launched a new assault on America’s neighborhoods. Big banks are now outsourcing their foreclosure processing to shady law firms with a history of breaking the law for a quick buck. These foreclosure scammers forge documents, backdate signatures, slap families with thousands of dollars in illegal fees and even foreclosure on borrowers who haven’t missed a payment."

All you (n)ever wanted to know about Ridgecrest (Los Angeles: fit in, transplants) - California (CA) - City-Data Forum

All you (n)ever wanted to know about Ridgecrest (Los Angeles: fit in, transplants) - California (CA) - City-Data Forum: "All you (n)ever wanted to know about Ridgecrest
Overview
Ridgecrest revolves around China Lake. Everybody works there, or works in support of it. It is simply known as 'The Base'. Coming from a large city, the people of Ridgecrest will surprise you. Many residents of the area have lived there their entire lives, many of whom dropped out of high school, had 3 kids before age 21, can't keep steady work etc, and have not experienced much outside of Ridgecrest. There are many deeply entrenched families in town, and after living there a few months you will know who they are. The other half of the population are transplants, either folks who moved there to work on base, got stationed at China Lake while in the Navy, retirees, people who moved up there for cost of living, a few LA transplants etc. It seems big at 25,000, but when you realize that there is no other large population center for 90 miles in any direction, the isolation becomes apparent. Valley fever can set in, and sometimes you'll wonder if there's anything beyond those mountains. Ridgecrest can seem like its own little world in that way."

2010 New Laws

2010 New Laws: "HOA� AB 313
(eff. 1-1-10)
Assessments�
AB 313 prohibits an HOA from making assessments on separate interests within the common interest development based on the taxable value of the separate interests according to the local assessor’s office, unless the association was already doing so on or before December 31, 2009, in accordance with its governing documents.� An association that is responsible for paying taxes on the separate interests within the common interest development is not subject to this prohibition.

Adds Section 1366.4 to the CA Civil Code.���

HOA� AB 899�
(eff. 1-1-10)
Disclosures�
AB 899 requires an HOA to include in the Assessment and Reserve Funding Disclosure Summary a specified statement regarding the interest rate earned on reserve funds and the assumed inflation rate applied to major component repair and replacement costs.� The HOA must also provide, at an owner’s request, a new Disclosure Document Index.� Furthermore, all the disclosure documents on this Index can be provided electronically (e-mail, fax, etc.).�

Amends Sections 1350.7 and 1365.2.5 and adds Section 1363.005 of the CA Civil Code.�"

Credit After Foreclosure, Bankruptcy, or Short Sale

Credit After Foreclosure, Bankruptcy, or Short Sale: "Credit After Foreclosure, Bankruptcy, or Short Sale

One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a 'preforeclosure sale' by Fannie Mae when the owner is in default) is the ability to obtain credit to purchase another home.� Fannie Mae has updated its credit guidelines in the FNMA Selling Guide, June 30, 2010. [ Note:�This is a 1,234 page�PDF document that takes a long time to download.]� This legal article summarizes those guidelines in Part I.� In addition, since lenders use FICO scores�in order to determine the creditworthiness of a borrower, this article covers the impact of a bankruptcy, foreclosure or short sale on FICO scores in Part II.�"

Fannie Mae DO - HCLTV to 100%

Fannie Mae DO - HCLTV to 100%: "HCLTV refers to the amount that a HELOC 2nd is set up for at closing, not the amount drawn.

LTV- 1st
CLTV- amount drawn on 2nd at closing
HCLTV- total availablity of credit after closing."

Homeowner Confidence Slides Again

Gmail - Market Matters Weekly Advisory - ridgecrestrealty@gmail.com

Gmail - Market Matters Weekly Advisory - ridgecrestrealty@gmail.com

Sacramento Bee

Appraisal sites on Net often fail to pin down accurate prices
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.

MAKING SENSE OF THE STORY FOR CONSUMERS

Housing Crash Continues

Housing Crash Continues: "The only true sign of a bottom is a price low enough so that you could rent out the house and make a profit. Then you'll know it's safe to buy for yourself because then rent could cover the mortgage and all expenses if necessary, eliminating most of your risk. The basic buying safety rule is to divide annual rent by the purchase price for the house:

annual rent / purchase price = 3% means do not buy
annual rent / purchase price = 6% means borderline
annual rent / purchase price = 9% means ok to buy"

Housing Crash Continues

Housing Crash Continues: "Housing Crash Continues -- It's Still A Terrible Time To Buy
Why?
By Patrick Killelea
Last updated 29 June 2010 (minor changes)

Because house prices will keep falling in most places. Prices are still dangerously high compared to incomes and rents. Banks say a safe mortgage is a maximum of 3 times the buyer's annual income with 20% downpayment. Landlords say a safe price is a maximum of 15 times the house's annual rent. Yet on the coasts, both those safety rules are still being violated. Buyers are still borrowing 6 times their income and putting only 3% down, and sellers are still asking 30 times annual rent, even after recent price declines."

Magazine-Daily News-Decision on Fannie and Freddie May Come Soon

Magazine-Daily News-Decision on Fannie and Freddie May Come Soon: "Decision on Fannie and Freddie May Come Soon
Government and banking experts meet next week to decide the future of Fannie Mae and Freddie Mac.

The likeliest solution is a complex one. The Mortgage Bankers Association is proposing a system where risk-based fees on a class of mortgage-backed securities would be charged in exchange for a government guarantee against losses.

Whatever the outcome, it is unlikely that Fannie and Freddie will be able to pay back the nearly $150 billion in taxpayer bailout money t"

Short sales soar in California, U.S. - latimes.com

Short sales soar in California, U.S. - latimes.com: "Short sales soar in California, U.S.
Real estate deals in which lenders agree to take less for a property than the balance on the mortgage have tripled since 2008, a report says."

2010 Tax Credit for New Home / First-Time Buyer Frequently Asked Questions

2010 Tax Credit for New Home / First-Time Buyer Frequently Asked Questions: "How do I reserve a New Home Credit?
Buyers who will qualify for the New Home Credit and enter into an enforceable contract on or after May 1, 2010 to purchase a new home may apply for a reservation using FTB 3549-RR, Reservation Request for New Home Credit. Both the buyer and seller must certify on the form that they have entered into an enforceable contract. Specific pages of the purchase agreement must be faxed to FTB along with the reservation request so FTB can verify the information. FTB will send the buyer a letter stating whether the reservation request is approved, revised, or denied."

Dead Peasants Insurance FAQ : Questions & Answers about Corporate Owned Life Insurance (COLI), Janitor Insurance

Dead Peasants Insurance FAQ : Questions & Answers about Corporate Owned Life Insurance (COLI), Janitor Insurance: "What is “Dead Peasant” Insurance?
Dead Peasant Insurance is sometimes used as a shorthand reference for life insurance policies that insure a company’s rank-and-file employees and name the company as the beneficiary. This means that the company receives the life insurance benefits when the covered employees die. This insurance may also be called “janitor insurance,”…"

Tax Sales from GovernmentAuctions.org�

Tax Sales from GovernmentAuctions.org: "How Do Tax Lien Sales Work?
What are Tax Liens?
When a property owner fails to pay property taxes for a specific amount of time, a tax lien is filed against him or her by their local government or county. The local government or county then sells the lien – at auction – to an authorized third party, who in turn collects on the lien, which is the taxes owed which is often a substantial interest. The tax lien purchaser can make a significant amount of money in as little as a few days. The tax lien purchaser also buys the right to own the property if the delinquent property owner fails repay the lien amount plus interest within a specific amount of time. "

The Payoff – What You Can Expect to Accomplish

With tax liens, you can make a significant amount of money in short amount of time due to the high interest rates on tax liens (New Jersey offers 18% per year for a two year period, plus an additional penalty of up to 6%). The exciting part is that if a bank forecloses on the property within the tax lien repayment period, they will pay you the cost of the lien plus interest at full maturity. In other words: Mr. Sanders purchases a Tax Lien Certificate in Illinois worth $10,000, with the full 36% interest rate, and the bank forecloses on the property the following day. The bank will pay Mr. Sanders $19,000 – what the lien plus interest would have been at full maturity or 36% a year times 2½ years. In this situation, Mr. Sanders would make $9,000 – almost doubling his investment in a single day.

Purchasing a tax lien gives the purchaser the right to own the property, if the lien is not repaid. In that situation, the property would have been bought for just the taxes owed. So, if the tax lien owned by Mr. Sanders has not been repaid after two-and-a-half years, he will now own the property for just $10,000 – his initial investment.

The risk on tax liens is very low for four main reasons: (1) state and local governments control the tax lien process, ensuring stability; (2) property owners risk losing their property if they do not repay the lien with interest; (3) in most states you receive the property if the delinquent owner does not repay the lien plus interest; (4) the value of a tax lien is not affected by the economy (unlike the stock market). In fact, a poor economy usually means that more people fail to pay their property taxes, enhancing the amount of tax liens available.

Investing in tax liens is something that very few people understand. Every year there are thousands of tax lien sales. And when these sales happen, there are usually hundreds of liens available, giving you a great chance to find a valuable investment at an extremely discounted rate.

. . . Activate Your Account With Us . . .

Back to Top

The Payoff – What You Can Expect to Accomplish

This is where the money is made. For example, in Illinois, the interest rate ranges from 18%-36% a year, with a two-and-a-half year redemption period. Additionally, if the bank or local government were to foreclose on the property, the lien holder would be eligible to receive full maturity on the lien. So say for example, Mrs. Jefferson would purchase a Tax Lien Certificate in Arizona worth $10,000 and the bank or local government were to foreclose on the property the following day, they could be obligated to pay Mrs. Jefferson $11,600 – the cost of the lien at full maturity.

However, if the property owner would fail to pay the lien back, and the bank or local government failed to foreclose on the property, the third party may be able to file a lien foreclosure, which can lead to a Tax Deed Sale (which you can read about here). The property owner and all possible lien holders have been informed of the legal implications of their failure to pay property taxes. The tax deed sale will usually result in either the property being transferred to the third party directly, or would give the property owner the right to make the first bid on the property.

A Tax Deed Sale is a public sale, usually at auction. More importantly, the now owner of the property after the lien foreclosure/tax deed sale, owns the property free and clear. All other liens are usually wiped out – property taxes take precedent, because the government wants to be paid – and any mortgages no longer use the property as collateral. What this means is that you would most likely own the property free and clear; however, it is best to check with local officials to ensure that the original property owner has no right of redemption.

Ridgecrest Realty

Builder

California Tax Credit

	$100,000,000 in Tax Credits Available for New Homes in California! California New Home Buyer Tax Credit Summary*
	· Tax Credit is available to buyers who purchase a new home for use as their principal residence for at least two years. · The maximum tax credit amount is $10,000. · $100,000,000 in tax credits available for new homes. When the $100,000,000 runs out, this opportunity is gone! · The credit is available for new homes that close escrow on or after May 1, 2010 and before August 1, 2011 (as long as a binding contract is signed by December 31, 2010). · There are no income limitations. · There are no first-time home buyer requirements to receive the new home tax credit.
When combined with the Federal First-Time Home Buyer Tax Credit of up to $8,000, eligible new home buyers in California can receive UP TO $18,000 in tax credits!
	Not all buyers will qualify. The requirements for qualifying for the California Tax Credit and the Federal Tax Credit are NOT the same.